When a semiweekly depositor accumulates $13,900 in employment taxes on payday, when must the taxes be deposited?

When a semiweekly depositor accumulates $13,900 in employment taxes on payday, when must the taxes be deposited?

• A. By the next Monday
• B. By the next Wednesday
• C. By the next Friday
• D. By the end of the week

Answer: (B)

When a semiweekly depositor reaches a threshold of $13,900 in employment taxes on payday, the Internal Revenue Service (IRS) has specific rules regarding when these taxes must be deposited. For semiweekly depositors, if employment taxes are accumulated on a payday that falls on a Wednesday, Thursday, or Friday, the taxes must be deposited by the following Wednesday. Since the amount of $13,900 indicates that the deposit is due within the semiweekly schedule, and given that the threshold has been reached on payday, the correct deadline for deposit is Wednesday of the following week. This is aligned with the IRS guidelines, which dictate that deposits for amounts exceeding certain thresholds should occur timely to avoid penalties and interest. The context of this requirement emphasizes the importance of timely reporting and remitting employment taxes, adhering to there being a clearly structured timeline for deposit based on when the taxes were incurred.

When a semiweekly depositor reaches a threshold of $13,900 in employment taxes on payday, the Internal Revenue Service (IRS) has specific rules regarding when these taxes must be deposited. For semiweekly depositors, if employment taxes are accumulated on a payday that falls on a Wednesday, Thursday, or Friday, the taxes must be deposited by the following Wednesday.

Since the amount of $13,900 indicates that the deposit is due within the semiweekly schedule, and given that the threshold has been reached on payday, the correct deadline for deposit is Wednesday of the following week. This is aligned with the IRS guidelines, which dictate that deposits for amounts exceeding certain thresholds should occur timely to avoid penalties and interest.

The context of this requirement emphasizes the importance of timely reporting and remitting employment taxes, adhering to there being a clearly structured timeline for deposit based on when the taxes were incurred.